Zakat Guide

For Shareholders and Investors

of Gulf Investment House

2022

Gulf Investment House and Affiliate Companies

Zakat Report

Ramadhan 1443 - May 2022

Zakat Guide

2022

GIH Shari'a Board's Resolution

GIH Shari'a Board has reviewed the basis of Zakat calculation. The Board confirms that the explanation under Section 1 and 2 below are in conformity with the rules of Islamic Shari'a principles.

Ramadhan 1443H May 2022

1) Zakat Payable by Shareholders of GIH

According to GIH's Shari'a Board, Zakat should be calculated annually. Moreover, Zakat obligations that result from changes in GIH's assets and liability positions are to be carried entirely by GIH's shareholders. GIH only pays Zakat on reserves and retained earnings which remain for one fiscal year. Zakat calculation method changes as investment objectives change as illustrated below:

  • Held for Trade: if shares are held for trade, investors must pay Zakat based on the market value of their investments as on the Zakat date. The Zakat rate is 2.5% for Hijri calendar or 2.5775% for Gregorian calendar.
  • Held for Income Producing: if shares are held for income producing purposes, Zakat obligation will equal to the number of shares held by a shareholder multiplied by the Zakat per share.

GIH's Zakat per share is the residual amount of GIH's net Zakatable assets divided by the number of outstanding shares.

As on Dec 31, 2021, GIH Zakat per share was (2.522 fils per share)

History GIH Zakat

2021/12/31

2020/12/31

2019/12/31

Zakat amount

1,025,182

841,446

898,355

Zakat paid on Reserves

0

0

0

Net Zakat

1,025,182

841,446

898,355

Shares Outstanding

406,495,660

406,495,660

406,495,660

Zakat per Share

0.002522

0.00207

0.00221

2

Zakat Guide

2022

2) Zakat Payable by Shareholders of Affiliate Companies

Companies Subsidiaries and Associated

Company

Listed /

Zakat per Share

Original Currency

Unlisted

Kuwaiti Fils

Zakat per Share

Currency

Mada'in Real-Estate Co

Unlisted

0.25

0.0031

AED

Gulf Real-Estate

Unlisted

-

-

-

Majan Development

Unlisted

2.7

0.00336

OMR

Additional Notes

1. Gulf Real Estates pays the entire Zakat on behalf of its shareholders.

Example

A shareholder of GIH holds 100,000 shares as on Dec 31st 2021. The purpose of his/her investment is to make capital appreciation and receive dividends. The Zakat per share for this investor should be calculated as follows:

Total Zakat payable = Number of Shares held * Zakat per share = 100,000 * 0.002522= KD 252.2

3

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Disclaimer

Gulf Investment House KSCC published this content on 05 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 September 2022 10:49:09 UTC.